Ross and Karl go head-to-head on costs of living on TODAY

Are Australians getting greedy, or are people still struggling despite costs of living having fallen in the past three years?

That was the question that sparked a fierce debate on the TODAY Show today, with finance editor Ross Greenwood and co-host Karl Stefanovic butting heads over the issue.

Ross's Money Minute section underscored the lower costs of living, as he pointed to falling prices of the average mortgage, tank of fuel, groceries and the rising value of super.

He acknowledged the numbers were not the same for everybody but said "for many typical working families with kids, life is okay."

"In other words, why be grumpy? Smile! Things are okay," he said.

However, Karl took issue with what he appeared to see as unfounded optimism, sparking a heated exchange.

"Maybe you should get out of your ivory tower and go out and visit some people who are really struggling in the western suburbs of any of our great cities - who are struggling with ongoing debts, who are struggling with paying for the kids's daycare, struggling (with) paying for things like groceries," Karl said.

"Even though (costs) might be cheaper, they're still struggling, Ross."

But Ross refused to back down.

"I'm not disputing the fact that they're struggling," he said.

"All I'm saying is compared to three years ago, life is a little better, and I recognise life's a struggle, but one of the things I wonder these days is whether all of us just want more than what we previously had."